This is purely technical analysis and educational in nature !
Recommendation: This is just a potential ABCD bearish Pattern. If the candle on 10th March 2023, is bearish with huge volume then there is a strong chance to short your trade. Also, look for any double tops or other indicators to support this bearish trend.
Note: Target 1 , Target 2 and Stop Loss is mentioned in the chart. Buy must be at the D Point for short trade.
Optional Reading Below
------------------------------
1) What is an ABCD Pattern ?
a) ABCD is a basic harmonic pattern and depicts reversal.
b) Two types of AB=CD trading patterns – the bullish AB=CD and the bearish AB=CD.
c) The pattern consists of 3 price swings.
d) The lines AB and CD are called "Legs" or "impulsive wave".
e) The line BC is called "correction" or "retracement wave".
2) What kind of ABCD Pattern is shown above in HAL Daily chart ?
a) ABCD bearish harmonic pattern
3) What are basic conditions to form a basic ABCD bearish harmonic pattern ?
a) Point A must be lower and Point B is considerably high.
b) There is no other point higher or lower between A and B.
c) Point C then forms above A and below B.
d) Point D must form above point B and it must be the highest data point between C and D.
4) Methods to find C Point ?
a) Use a "Fib Retracement Tool" in traders view and connect between A and B.
b) Distance between BC must be at Fibonacci retracement level 38.2%, 50%, 61.8% and 78.6% of AB.
c) if it at this levels, then you found your C Point accurately.
5) Using one of the below methods we can find D Point ?
Note: Remember CD line must break the B Point before trying to find D Point.
a) Method 1: Must Satisfy the Condition AB=CD (if we do not have gaps and elephant candles in the CD impulsive wave)
a) Distance between BC must be at Fibonacci retracement level 50% or 61.8% or 78.6% of AB.
b) Then Use a "Price Range Tool" in traders view to find the distance between AB and then place it on C to find D.
b) Method 2: Satisfy Fibonacci Extension Ratios and here AB will not be equal to CD(if we have gaps and elephant candles in the CD
impulsive wave)
a) Use a "Fib Retracement Tool" in traders view and connect between B and C.
b) D point must satisfy the Fibonacci retracement level of 127.2% or 161.8% or 298.3%
Disclosure:
I am not a SEBI registered advisor. The information provided here is for education purposes only. I will not be responsible for any of your profit/loss with this channel suggestions. Consult your financial advisor before taking any decisions. This is neither an advice nor an endorsement.
Recommendation: This is just a potential ABCD bearish Pattern. If the candle on 10th March 2023, is bearish with huge volume then there is a strong chance to short your trade. Also, look for any double tops or other indicators to support this bearish trend.
Note: Target 1 , Target 2 and Stop Loss is mentioned in the chart. Buy must be at the D Point for short trade.
Optional Reading Below
------------------------------
1) What is an ABCD Pattern ?
a) ABCD is a basic harmonic pattern and depicts reversal.
b) Two types of AB=CD trading patterns – the bullish AB=CD and the bearish AB=CD.
c) The pattern consists of 3 price swings.
d) The lines AB and CD are called "Legs" or "impulsive wave".
e) The line BC is called "correction" or "retracement wave".
2) What kind of ABCD Pattern is shown above in HAL Daily chart ?
a) ABCD bearish harmonic pattern
3) What are basic conditions to form a basic ABCD bearish harmonic pattern ?
a) Point A must be lower and Point B is considerably high.
b) There is no other point higher or lower between A and B.
c) Point C then forms above A and below B.
d) Point D must form above point B and it must be the highest data point between C and D.
4) Methods to find C Point ?
a) Use a "Fib Retracement Tool" in traders view and connect between A and B.
b) Distance between BC must be at Fibonacci retracement level 38.2%, 50%, 61.8% and 78.6% of AB.
c) if it at this levels, then you found your C Point accurately.
5) Using one of the below methods we can find D Point ?
Note: Remember CD line must break the B Point before trying to find D Point.
a) Method 1: Must Satisfy the Condition AB=CD (if we do not have gaps and elephant candles in the CD impulsive wave)
a) Distance between BC must be at Fibonacci retracement level 50% or 61.8% or 78.6% of AB.
b) Then Use a "Price Range Tool" in traders view to find the distance between AB and then place it on C to find D.
b) Method 2: Satisfy Fibonacci Extension Ratios and here AB will not be equal to CD(if we have gaps and elephant candles in the CD
impulsive wave)
a) Use a "Fib Retracement Tool" in traders view and connect between B and C.
b) D point must satisfy the Fibonacci retracement level of 127.2% or 161.8% or 298.3%
Disclosure:
I am not a SEBI registered advisor. The information provided here is for education purposes only. I will not be responsible for any of your profit/loss with this channel suggestions. Consult your financial advisor before taking any decisions. This is neither an advice nor an endorsement.
Trade active:
Bearish Trend continues ! It may meet B Point Support first.
Trade active:
1. Successfully : Met First Target of 2669 Rs. on 16th March 2023.
2. Wait for last Target at 2598 Rs.
2. Wait for last Target at 2598 Rs.
Trade closed: target reached:
Successfully Reached Short Trading Target.
Extra Tip: Now it will go back up :)
Extra Tip: Now it will go back up :)